Friday, August 26, 2005

Rate Negotiation Headaches Averted

Ocean carrier mergers and acquisitions have shaken up the industry, leaving behind a tangled web for consignees and shippers to navigate. So how do you avoid getting snagged in the web of management hierarchy and get the best bang for your buck when negotiating a shipping deal?

1. Use the "big picture" approach to create leverage.

2. Be creative; offer the package deal.

3. Control the negotiations.

4. Let them know what you spend.

5. Do your homework.

6. Know the hierarchy in their marketing and sales departments (past & present)

7. Attend industry conferences and build your personal network.

8. Know where your freight is at all times, demand to keep the visibility.

9. Keep trying to negotiate service agreements/levels/kpi's into your contracts.

10. Get to know the local operating personnel in your shipping areas (origins and destinations)


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